The Securities and Exchange Commission announced that on July 17, 2003, the Honorable Michael B. Mukasey, of the United States District Court for the Southern District of New York, entered a Final Judgment on Consent against defendants Ryan J. Fontaine and Simpleton Holdings Corporation a/k/a Signature Investments Hedge Fund ("Signature"), permanently enjoining them from violating the anti-fraud and registration provisions of the federal securities laws, and ordering them to pay disgorgement and prejudgment interest totaling $29,837.31, plus a civil penalty of $29,300.

The Commission's complaint alleged that, beginning as early as July 2002 and continuing through October 22, 2002, Fontaine and Signature deceived investors into investing in Signature by fraudulently claiming, among other things, that: (a) Signature managed approximately $250 million; (b) Salomon Smith Barney was Signature's sub-adviser; (c) KPMG, LLP performed auditing services for Signature; and (d) Signature had earned above-average returns throughout their 13-year investment history. According to the complaint, all of these representations were false. The complaint alleged that Fontaine and Signature had raised at least $29,300 from at least two investors by means of their fraudulent statements.

Fontaine and Signature consented to the entry of the Final Judgment without admitting or denying the allegations in the Commission's complaint. Fontaine has also consented to the entry of an administrative order barring him from associating with an investment adviser.